Tony Burke’s IR laws and right to disconnect expose weak hand business leaders have dealt themselves
After facing a comprehensive rout on two tranches of IR reform and being exposed as badly out of touch with the public mood on the voice to parliament referendum, corporate Australia must refresh and take a constructive place in public debate about what is needed to build the nation’s productivity.
A desire to feel good about social issues has resulted in company boards being captured by the demands of pressure groups that will never be satisfied. It has led to a misreading of the true intentions of the Labor Party when it comes to delivering the demands of the trade union movement.
Like the parable of the frog and the crocodile, business leaders should not be surprised that once in office Labor has exposed its true nature. The crocodile couldn’t help itself in eating the frog it had helped across the river. Labor will always put the interests of the trade union movement first.
The extent to which business allowed itself to be divided and locked out of negotiations on the Albanese government’s industrial relations reforms reflects poorly on the peak business lobby groups.
After being outmanoeuvred at the Jobs and Skills Summit and forced to accept a return of industry-wide bargaining, bosses have fared equally badly on Tony Burke’s stage two reforms, which are designed to strengthen the hand of unions and throttle the flexibility of the gig economy and remote work.
Business Council of Australia chief executive Bran Black described the changes as anti-business and anti-worker, and said they come at a time the nation can least afford it. The Minerals Council of Australia says the bill is “bad policy” and would weaken the economy.
Problem areas include giving unions access to worksites without advance notice and what it called the “ridiculous addition” of the proposed right to disconnect. Other concerns include changes to the intractable bargaining provisions that will require employees to be better off overall on a clause-by-clause basis, reducing flexibility to bargain.
The concerns of business were not able to cut through during negotiations from which they were largely excluded.
The bill passed the Senate on Thursday on what Mr Burke said was a “good day for those workers who want to be able to know that when they’re on their weekend and not being paid, they can enjoy their weekend”. Crucial to the bill passing was the support of the Greens, and independent senators Lidia Thorpe and David Pocock.
The cost of the reforms to the economy and employment is yet to be felt. But the process has shown clearly that business leaders today are a far cry from the likes of Sir Arvi Parbo, Chris Corrigan, Hugh Morgan and others who were brave enough to take on workplace restrictions for the greater public good.
Lobby groups have allowed themselves to be sidetracked and were too cowed by threats of public shaming by left-wing groups such as GetUp.
Changes to IR and a broken promise on tax reform are only the start of what can be expected. Business groups must reflect on their losses and make sure they do not repeat the same mistakes.
Serious security dangers marginalised in campaign
At some stage the nation could face a brutal reckoning over defence. There is a manifest need for more assets. Policies to lift productivity and revenue are needed to pay for them.
Still flying blind on power plan
The Australian Energy Market Commission has lifted the curtain on Labor’s renewables-only transition blueprint. It has warned that electricity system security risks are emerging faster than expected.
Business leaders are paying the price for their preoccupation with environmental, social and governance issues that, while important, are peripheral to their key remit. An emphasis on net zero, gender equity and inclusion have distracted management time and resources and allowed organisations to lose sight of their primary task, which is safeguarding the interests of shareholders, their employees and the national economy.